Operating profit growth of listed firms decelerated in Q4 of FY22: RBI data

Operating profit of manufacturing companies decelerated sharply to 7 per cent in the fourth quarter of last fiscal as against 70 per cent in the corresponding quarter of the preceding fiscal

Companies, company, firms, investment, investors, growth, funds, tax, profit, loss, decision, board
Representative image
Press Trust of India Mumbai
2 min read Last Updated : Jun 21 2022 | 8:16 PM IST

Operating profit growth of listed private companies decelerated across broad sectors in the January-March quarter of 2021-22, on the back of rise in expenditure, according to an RBI data.

The Reserve Bank has released its data on the performance of the private corporate sector during the fourth quarter (Q4) of 2021-22 drawn from abridged quarterly financial results of 2,758 listed Non-Government Non-Financial (NGNF) companies.

Operating profit of manufacturing companies decelerated sharply to 7 per cent in the fourth quarter of last fiscal as against 70 per cent in the corresponding quarter of the preceding fiscal.

In case of companies in services sector (non-IT), the growth in operating profit slowed to 6.1 per cent in the fourth quarter of 2021-22 compared to 62.5 per cent in the year-ago period.

The operating profit in case of IT firm slowed to 5.9 per cent from 19.7 per cent.

RBI data further said sales of 2,758 listed private non-financial companies recorded a healthy growth of 22.3 per cent (year-on-year) in fourth quarter of 2021-22, compared to 22.8 per cent in the comparable quarter of previous year.

"Aggregate sales of 1,709 listed private manufacturing companies registered a steady growth (y-o-y) of 24.6 per cent in Q4, 2021-22, driven by high sales growth in petroleum, non-ferrous metals, iron and steel, chemicals and textiles industries," the RBI said.

Information Technology (IT) companies continued their move on growth trajectory with 20.7 per cent growth in sales during fourth quarter of 2021-22.

Sales of non-IT services companies expanded by 20.9 per cent (y-o-y) in January-March period 2021-22, led by steady growth in transport, trade, telecom, hotel and restaurant sectors.

Despite rising expenditures, manufacturing companies maintained their operating and net profit margins in the fourth quarter of 2021-22 as compared to previous quarter.

Net profit margin remained stable for IT companies, while for non-IT services companies it remained in negative terrain due to losses recorded by telecom and transport companies, the RBI said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Reserve Bank of Indialisted firmsIndian Economy

First Published: Jun 21 2022 | 8:16 PM IST

Next Story